What does COO stand for?
COO – Chief Operating Officer, also called the Chief Operations Officer, is a member of a high-level group of executives known as the “Suite C”. The COO is responsible for the daily operation of the company, and routinely reports to the highest-ranking executive, usually the chief executive officer (CEO).
Other executives include the Chief executive officer (CEO) and CFO Chief Financial Officer (CFO). Although the role of managing directors may vary from company to company, they are usually responsible for overseeing day-to-day operations.
Difference between COO and CEO
The chief of operations is usually the second in command of the executive director. The role of the chief executive varies from industry to industry, however, his role generally implies “general” responsibilities such as the improvement of the company’s product creation and delivery systems. On the contrary, the operations director supervises how the creation and distribution system of a company’s products is working. In this sense, managing directors and executives have a synergistic relationship.
Responsibilities of Managing Directors
The responsibilities of managing directors vary, depending on the company or industry. However, they generally monitor operations to ensure that the company’s systems are running efficiently. COO are usually the eyes and ears of the executive director, as CEOs are often too busy to supervise daily operations. As such, COO inform the CEOs of the relative efficiency of current systems and discuss any need for improvement.
Need for COO
Not all companies have an operations manager, since the situation may not be necessary, depending on the structure of the company. Some companies have a COO who also serves as president who heads the board of directors in establishing the mission and objectives of the company. Increasingly, however, companies are choosing to separate the leading role from that of CEO. If a company has a president and a CEO, the role of the chief operating officer can be redundant. The president acts as the CEO, while he functions as the chief operating officer.
What does CEO mean in business?
Managing directors are often described as the “vice president” of a company, with the CEO serving as president. When a general manager retires, the chief of operations can rise to that position. In fact, the job of director of operations often serves as training for the position of the chief executive. This seems like a natural progression, since operations managers already understand the operations, mission and objectives of the company.